Roundup: The stages of scandal

Kady O’Malley has a piece about the five stages of a Canadian political scandal, and wonders just where the current Bill Morneau imbroglio lies along it. While she’s probably not wrong in that it’s likely hovering near the end-point, I would like to just take a moment to point out that most of this whole affair has been fuelled by weak-sauce allegations and conflated facts, and this particular air of desperation as people keep flinging the equivalent of spaghetti against a wall in the hope that something inevitably sticks.

And there is a complete air of desperation in the latest developments in this case. Bill Morneau paying a $200 fine for failing to disclose his stake in the ownership structure of his French villa – he had disclosed the villa itself – was turned into wails that he was a law-breaker, or that the fine was somehow a sanction for a “conflict of interest” that was never a conflict. And the NDP tried to move a motion to get Bill C-27 withdrawn, because they sailed a conspiracy theory that somehow there was a conflict of interest with a bill that they opposed for ideological reasons, in order to come at a different angle of attack on it. And while is no actual conflict with the bill, it keeps being reported uncritically as though there were.

And that’s probably what gets me the most irritated about these so-called political scandals, is that many are started by poor reporting on thin facts that are designed to be sensational, with follow-ups that are bigger and bigger reaches to the point where it’s a series of mind-numbing conspiracy theories being floated, each of which get amplified in QP. For what? I’m failing to see how imaginary scandals are holding government to account. There are so many other issues that have substantive policy issues that should be debated or explored, and we keep chasing these non-stories because we think there’s blood in the water. But by all means, keep chasing this phantom menace. It’s doing our democracy wonders.

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Senate QP: Sajjan is taking his time

After a terrible QP in the Other Place, it was hoped that things would be better in the Senate as Defence Minister Harjit Sajjan arrived to answer questions from his department. Senator Smith led off, worrying about the state of the planned purchase of Super Hornets and the possible purchase of used F-18s instead. Sajjan first stepped back to outline the problem of not being able to meet both NORAD and NATO requirements, and said that they will be filling the interim gap before they replace the whole fighter fleet. Smith wondered about the issue of newer versus older when it comes to the interim fighters, and Sajjan noted that they hoped for new, but would go for the same models that we currently use if necessary.

Senator Enverga asked about the situation in Iraq, and wondered about what our role was in the fight against ISIS if training was suspended. Sajjan said that they were assessing the situation given the changing situation on the ground in order to assess what the needs are now that Mosul has fallen.

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Roundup: Abandoning a fiscal anchor

In yesterday’s National Post, economist Stephen Gordon cast a critical eye on the fall economic update and the government’s excuse for running deficits, and the decision to abandon the fiscal anchor of balanced budgets in favour of a declining debt-to-GDP ratio. And rather than worrying about the non-existent debt-bomb, Gordon is mostly looking for answers why the policy shifted post-election. Fair enough. (He also does the math on how much more a government can spend by shifting the fiscal anchors like the government did here).

Enter fellow economist Kevin Milligan, who digs through and finds an answer. Enjoy.

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QP: Listing numbered companies

As the Centre Block was getting all dressed up for the arrival of the President of Colombia, all of the leaders, permanent or “parliamentary,” were in the Chamber and ready to go. Andrew Scheer led off, mini-lectern on desk, leading off with the Globe & Mail story about four other cabinet ministers who apparently own stocks outside of a blind trust — because the Globe is now the opposition research bureau. Justin Trudeau reminded him that everyone worked with the Ethics Commissioner, and that all of the arrangements matched those used by the previous, Conservative finance minister. Scheer demanded to know who they were, and Trudeau tutted that in order to avoid slinging mud, they relied on the Commissioner to offer guidance. Scheer switched to French to ask the same thing, and got the very same response. Scheer tried again in French, and Trudeau praised the advice of the Commissioner. Scheer tried one last time in English, but had a hard time keeping a straight face as he demanded the names. Trudeau instead responded with a lecture about the need for opposition in a healthy democracy, but they had a Commissioner to keep everyone from slinging mud. Guy Caron was up next to lead for the NDP, and offered some added sanctimony with his demands for the names. Trudeau noted that they were willing to go above and beyond the rules, and that the personal attacks were a distraction from the good news about the economy. After another two rounds of the same, in both English and French, Hélène Laverdière raised the nuclear weapon ban treaty and the Nobel Peace Prize, and the government’s refusal to sign it. Trudeau praised the work of the Prize winners, and noted that they were taking leadership with the fissile materials ban, which included nuclear and non-nuclear states.

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Roundup: Harper unhappy with NAFTA talks

Stephen Harper has apparently written an angry memo to his clients about the governmetn’s handling of the NAFTA negotiations, accusing them of bungling them by not evaluating American demands seriously (err, you have seen how many of their demands are literal impossibilities, right?) and of ignoring a softwood deal (which officials say was never on the table), and of aligning themselves too much with Mexico when they were the targets of America’s ire. Canadian officials are none too pleased, and consider it a gift to the Trump administration.

Alex Panetta, the Canadian Press reporter who broke the story, has more commentary below.

Paul Wells offered a few thoughts of his own on the news.

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Incidentally, the PM has also vocally disagreed with former Conservative minister James Moore’s assertion that trade talks with China are hurting our talks with the Americans.

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Roundup: Is there meaning to staff changes?

The Hill Times had an interesting piece out yesterday about staffing changes into and out of the PMO, and what it says about the culture of central control in the Trudeau-led government. While some of the commentary from former Conservative staffers about the marked similarities could be seen as trouble-making (and indeed, I’m not sure that we are quite at the level of central control that was exerted under the Harper years), I do think there is a kernel of truth in there which may simply be a reflection of politics in the 21st century, which is heavy on message discipline in order to deal with the pressures of a media apparatus that was not as strident as it was during the days of cabinet government of yore. Add to that, the increasingly horizontal power structures mean that the mere act of governing is not the same as it was during those days, so the ways in which the practice of government has evolved should be a consideration.

Nevertheless, the movement of this staff is quite likely indicative of more than just the usual cross-pollination that takes place over the course of a government, and the concerns about rookie ministers needing more hand-holding are probably not unfounded, and there have definitely been some stories of certain ministers having chronic staffing problems that can’t be dismissed out of hand. Nor can former staffers’ concerns about movement being based on connections over ability be shrugged off either, though one has to wonder if it was ever always thus, and it just manifests itself in slightly different ways today than in the past. In all, while I disbelieve the notion that the Trudeau PMO is just the Harper PMO redux, I will agree that there are probably a few more similarities than either would like to admit to openly.

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Roundup: Economic update choices

The fall economic update was released yesterday, and while the rapid pace of economic growth has meant more revenues and a smaller deficit, it also means that the government isn’t going to put too much more effort into getting back to balance anytime soon, keeping the focus on reducing the debt-to-GDP ratio instead (which is going down faster). Instead, finance minister Bill Morneau insisted that they would be “doubling down” on investing in the middle class, mostly by indexing the Canada Child Benefit to inflation earlier than planned, as well as enhancing the Working Income Tax Benefit (and I will note that this part of his speech seemed to be one where Morneau acknowledged that singletons existed and needed a hand up too). There was some additional programme spending in there as well (for more, the National Post outlines eight things in the update).

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While the economy is growing at an enviable pace, it could put the government and the Bank of Canada in a bind as the need to start withdrawing stimulus measures comes to the forefront, and deciding whether fiscal or monetary policy should make the first move. There is also a marked shift between last year’s update and this year’s in that the focus is moving away from longer-term goals to short-term ones (and that could be political reality setting in). Critics accuse the government of using the update to try and change the channel on the recent headlines around Bill Morneau’s assets and disclosures, while Andrew Coyne gives his signature scathing look at the choices of the deficits, and around the rapid growth in government spending.

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Roundup: A surprise by-election win

In the two federal by-elections that took place last night, it was no surprise that the Conservatives won handily in Sturgeon River–Parkland riding that Rona Ambrose used to hold. Mind you, the newly elected MP there, Dane Lloyd, may prove to be uncomfortable given his past history of saying some fairly controversial things, but that’s now Andrew Scheer’s problem to manage. The real surprise, however, was that the Liberals won the Quebec riding of Lac Saint-Jean, the former riding of Denis Lebel. Why is it so surprising? Because for a Conservative riding where the NDP were a close second in the 2015 election, this time around it was a Liberal victory, with the Conservatives barely managing second place, the Bloc in a close third, and the NDP a distant fourth. And this was the Liberals’ weakest Quebec showing in 2015 and a riding that they haven’t held since 1980.

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So can we draw any conclusion from these results? Probably not yet – it’ll probably take a few days to suss out the data and get a sense of what happened on the ground, but it does bear mentioning that the of the three opposition parties, all of them had new leaders, and each of them spent a fair bit of time in the riding over the past couple of weeks, hoping to drum up support. That the Conservatives lost the riding may simply be indicative that the riding was more loyal to Lebel himself than the party he ran for (remember that he was a former mayor from the region), but it can’t be a ringing endorsement of Scheer either. And while the pollsters are all out in force talking about the Liberals’ fall from grace in their polling numbers lately, the fact that the Liberals still managed to win a seat that the Conservatives held, even amidst weeks of headlines about tax changes and Bill Morneau’s assets, in a region where they didn’t have any historic strength, probably still says something about the party’s appeal nationally. Maybe it’s about the collapse of the NDP vote in Quebec, which could possibly be a harbinger of things to come under Jagmeet Singh? Maybe it’s the appeal of sock diplomacy and selfies? Suffice to say, it’s going to be an interesting few days for all of the parties as they figure out what happened, and prepare for the next round of by-elections.

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QP: Conspiracy vs pabulum

There was no Justin Trudeau today, as he was busy with “private engagements” (which later turned out to be visiting the new Stanley Cup monument on Sparks Street), nor Andrew Scheer. Before QP got started, there was a moment of silence for the third anniversary of the Parliament Hill shooting and the deaths of Patrice Vincent and Nathan Cirillo. Moment over, Pierre Poilievre led off, railing that the government was taking away the disability tax credits for diabetics. Diane Lebouthillier read a statement in English that stated that her husband had died from diabetes, and that nothing had changed and that CRA was hiring nurses to help with the application process as well as improve data collection to ensure there were no problems going forward. Poilievre then turned to the Morneau Shepell/Bill C-27 conspiracy theory, demanding to know if Morneau got written permission from the Ethics Commissioner to table the bill. Morneau said that while the opposition was focused on his finance, he was working for the nation. After another round of the same, Gérard Deltell repeated the diabetes question in French, got the same answer from Lebouthillier, and then repeated the C-27 question in French — and got the same response from Morneau in French. Guy Caron was up next, leading for the NDP, and after trying to infantalise Morneau, he demanded to know where his higher ethical standards were. Morneau reiterated that he was focusing on Canadian families and touted the growth rate, and Caron demanded an acknowledgment of wrongdoing in English. Morneau’s answer didn’t change. (Mmm, pabulum). Alexandre Boulerice was up next, reiterating the C-27 conspiracy theory, and Morneau offered more pabulum in response. Boulerice reiterated in French, and got some francophone pabulum.

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Roundup: Morneau’s pabulum problem

Oh, Bill Morneau. After weeks of rough treatment, and the last week most especially, it’s no wonder that he was getting a bit testy when the questions kept coming up yesterday. That he snapped at a journalist just got our backs up because how very dare he, and so on. But it’s hard not to see how this is almost entirely a mess of his own making. Not just the fact that he didn’t divest his shares earlier, which make of that what you will – he was still within the law. I find myself ambivalent to the sanctimonious cries that he needs to appear to be whiter-than-white because that’s a Sisyphean task for which there will never be satisfaction short of being reduced to sackcloth and ashes, especially compounded by the oh-so-Canadian reflex of treating him like a tall poppy who must be brought down to size. The Conservative line that he’s a rich guy who can’t understand the woes of the working guy is certainly suffused with that narrative, but that’s also populism for you.

For me, the bigger problem is that so much of this is about the fact that it all goes back to this government’s particular communications problem of responding to everything with a spoonful of pabulum rather than taking their criticisms head-on. When the Conservatives launched into outright falsehoods about the proposed tax changes, Morneau didn’t fight back – he mouthed the same platitudes and shovelled more pabulum in our faces, and the myths metastasised until he was playing defensive when there was no reason for him to. That the CRA bungled their release of the folio on employee discounts just fed into this same problem, and again, the government couldn’t communicate their way out of a wet paper bag there either, sticking to the pabulum lines of not taxing the middle class rather than actually explaining that no, these are very specific circumstances that won’t actually capture retail workers. And given the current questions around his holdings, there are certainly better ways that he could have communicated decisions that were made (including why a blind trust would not have made sense, for example), or why the various conspiracy theories about how legislation or tax changes he’s proposing are apparently for the benefit of his company are patently absurd (because hey, attacking the messenger is always the sign that you’re on the winning side of the argument). But nope. Pabulum. And you would hope that maybe, just maybe, the government will learn that this is not the way to go about communicating, but I doubt it. They’ll probably hold tight and weather this manufactured outrage for another week or so until something else distracts the opposition, and the outrage cycle will start up again over something else, for which the government’s solution will be yet more pabulum. It’s tiresome from all sides. But this is what politics has devolved into.

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Meanwhile, Andrew Coyne castigates Morneau for his poor judgment, while Colby Cosh thinks of him fondly as a great quasi-Albertan for using a numbered company registered in that province, paying taxes there and giving back to the province’s economy.

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